The Indian government has hiked the securities transaction tax (STT) on futures and options (F&O) trading.

2004

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The number of F&O traders on domestic stock markets has jumped exponentially by over 500% in a span of just 3 years

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The STT on the sale of options will be charged to Rs 2,100 on a turnover of Rs 1 crore vs the earlier charges of Rs 1,700, a hike of 23.5%.

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Traders in the futures segment will now have to pay STT of Rs 1,250 on Rs 1 crore of turnover against the earlier levy of Rs 1,000

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The new F&O charges will come into effect from the new financial year 2023-24.

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In percentage terms, STT on the sale of futures has been hiked from 0.01% to 0.0125%

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In the case of options, STT charges hiked from 0.017% to 0.021%, according to the Finance Ministry.

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A recent study shows F&O trading is gaining popularity but every 9 out of 10 individual derivative traders end up losing their capital.

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